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March 27, 2024 HB 24-1393
Legislative Council Staff
Nonpartisan Services for Colorado’s Legislature
Fiscal Note
Drafting Number:
Prime Sponsors:
LLS 24-1084
Rep. Bird; Taggart
Sen. Zenzinger; Kirkmeyer
Date:
Bill Status:
Fiscal Analyst:
March 27, 2024
House Appropriations
Anna Gerstle | 303-866-4375
anna.gerstle@coleg.gov
Bill Topic: ACCELERATING CONCURRENT ENROLLMENT PROG RAM MOD
Summary of
Fiscal Impact:
☐ State Revenue
☒ State Expenditure
☐ State Transfer
☐ TABOR Refund
☐ Local Government
☒ School Districts
Budget package bill. The bill establishes caps on ASCENT program participation and
per pupil rates, and requires a study of program costs. On net, the bill decreases state
expenditures and school district funding on an ongoing basis.
Appropriation
Summary:
For FY 2024-25, the bill requires and includes a net appropriation decrease of
$1.0 million to the Colorado Department of Education, primarily from the State
Education Fund. See State Appropriations Section.
Fiscal Note
Status:
The fiscal note reflects the introduced bill. It was recommended by the Joint Budget
Committee as part of the FY 2024-25 budget package.
Table 1
State Fiscal Impacts Under HB 24-1393
Budget Year
FY 2024-25
Out Year
FY 2025-26
Revenue - -
Expenditures General Fund $45,600 -
State Education Fund ($1,081,762) ($4,987,340)
Total Expenditures ($1,036,162) ($4,987,340)
Transfers - -
Other Budget Impacts General Fund Reserve $6,840 -
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March 27, 2024 HB 24-1393
Summary of Legislation
Under current law, the Accelerating Students through Concurrent Enrollment (ASCENT) program
is available to all qualified students who are designated to participate by their local education
provider. The bill:
beginning in FY 2024-25, limits the per student rate for an ASCENT program participant at
the 2023-24 extended high school per pupil rate;
beginning in FY 2025-26, caps the number of ASCENT program participants in each local
education provider (LEP) at the LEP’s number of participants in FY 2024-25;
requires that the Colorado Department of Education (CDE) submit a report to the legislature
by December 1, 2024 that includes an analysis of LEP costs to offer the ASCENT program and
recommended changes to improve program outcomes;
allows the State Board of Education to establish selection criteria that an LEP may choose to
use to designate participating students; and
requires participating students to complete a state or federal application for financial aid
(CASFA/FAFSA).
Background
The ASCENT program allows participating students to enroll in postsecondary courses in a fifth
year of high school, paid by the LEP. Participating students are counted in a LEP’s extended high
school pupil enrollment count and are funded through the school finance formula at a flat per
pupil rate. The extended high school per pupil rate is $9,588 in the current FY 2023-24 after the
budget stabilization factor and $10,244 in FY 2024-25.
Initially, participation in the ASCENT program was capped annually in state law.
House Bill 22-1390 removed the cap on the program and enrollment has since increased from
500 in FY 2021-22 to 1,230 in FY 2023-24, and is projected to increase to 1,666 students in
FY 2024-25.
State Expenditures
On net, the bill decreases state expenditures in CDE by $1.0 million in FY 2024-25 and
$5.0 million in FY 2025-26. In FY 2024-25, this includes a decrease of $1.1 million from the State
Education Fund and an increase of $45,600 from the General Fund. In FY 2025-26, the
$5.0 million expenditure decrease is from the State Education Fund. Costs are listed in Table 2
and discussed below.
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March 27, 2024 HB 24-1393
Table 2
Expenditures Under HB 24-1393
FY 2024-25 FY 2025-26
Department of Education
State Share of School Finance – ASCENT ($1,081,762) ($4,987,340)
Study contract $45,600 -
Total Cost ($1,036,162) ($4,987,340)
ASCENT funding. The bill is expected to decrease the state share of school finance due to the
cap on ASCENT participation and per pupil rates.
FY 2024-25. In FY 2024-25, the state share will decrease by approximately $1.1 million due
to the cap on the ASCENT per pupil rate. The fiscal note assumes there will be 1,666 students
enrolled in ASCENT in FY 2024-25. The extended high school per pupil rate is expected to
be $10,244 in FY 2024-25 under current law; the bill will limit it to $9,588, which is the
FY 2023-24 rate after the budget stabilization factor.
FY 2025-26. In FY 2025-26, the state share will decrease by approximately $5.0 million due
to both the cap on the per pupil rate at the FY 2023-24 rate and the limit on enrollment at
FY 2024-25 levels. The fiscal note assumes that, under current law, ASCENT enrollment
would have increased by 20 percent and the per pupil rate would have increased by
2.6 percent, the Legislative Council Staff March 2023 forecast of inflation.
Contract costs. In FY 2024-25 only, CDE requires $45,600 to contract with a vendor for the
ASCENT program study. Costs assume 228 hours at a rate of $200 per hour.
Other Budget Impacts
General Fund reserve. Under current law, an amount equal to 15 percent of General Fund
appropriations must be set aside in the General Fund statutory reserve. Based on this fiscal note,
the bill is expected to increase the amount of General Fund held in reserve by the amounts
shown in Table 1, decreasing the amount of General Fund available for other purposes.
School District
The bill impacts funding and workload for school districts that have students enrolled in the
ASCENT program, as discussed below. For school districts that do not have students
participating in ASCENT, the bill will have no fiscal impact.
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March 27, 2024 HB 24-1393
ASCENT funding. The bill reduces the state share of school finance that is distributed to school
districts for ASCENT students by an estimated $1.1 million in FY 2024-25 and $5.0 million in
FY 2025-26, as described in the state expenditures section. The per pupil rate for ASCENT
students will decrease to $9,588 on an ongoing basis, from $10,244 in FY 2024-25 and an
estimated $10,500 in FY 2025-26. It will also limit enrollment for each district at the number of
participants that enrolled in FY 2024-25, limiting future growth in enrollment and corresponding
funding for those students that would have enrolled in the program.
Local share. By decreasing total program and the state share, the bill also minimally decreases
the local share of school finance for fully funded districts that have students in ASCENT. This
estimated at about $11,100 statewide in FY 2024-25.
Workload. The bill also increases workload for school districts to adjust policies to align with
the enrollment cap and new participation requirements, as well as to participate in the study
conducted by CDE.
Effective Date
The bill takes effect upon signature of the Governor, or upon becoming law without his
signature, except that Section 3 of the bill takes effect July 1, 2024.
State Appropriations
For FY 2024-25, the bill requires and includes the following appropriations to the Colorado
Department of Education:
an increase of $45,600 from the General Fund; and
a decrease of $1,081,762 from the State Education Fund.
State and Local Government Contacts
Education Joint Budget Committee Staff
The revenue and expenditure impacts in this fiscal note represent changes from current law under the bill for each
fiscal year. For additional information about fiscal notes, please visit the General Assembly website.